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Buying Finisar on the Way Down

|Includes: Finisar Corporation (FNSR)

Finisar got crushed after hours after excellent, no, great earnings and disappointing guidance. Too many ROADMs in inventory in China, and some surprising order weakness from China in general. Maybe there was a little weakness otherwise, but still guiding ~29% year over year next quarter. Figure they sell over a billion next year while maintaining 17% net margins at 20 PEx and I see 45 to 50 per share. And that is conservative. So, I will be buying FNSR on weakness. Might bounce tomorrow, might grind down all quarter, either way, once I see a little life in the hourly chart I will be a buyer.

Disclosure: I am long FNSR.

Additional disclosure: Long for over a year, will be long photonics for at least another year